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Bandwidth.com closes USD22m PE financing

Bandwidth.com has closed a USD22 million private equity financing from Carmichael Partners, a growth equity investment firm that was co-founded in 2010 by former FCC Chairman Kevin Martin and veteran private equity investor Brian Bailey.

The funding enables Bandwidth.com to continue the company’s expansion into key strategic areas, such as the recent acquisition of 911 emergency services provider dash Carrier Services, and accelerate the already rapid growth of its small and medium business focused services, such as Phonebooth, Bandwidth.com’s popular cloud-based phone service which doubled its customer base in the last quarter alone.

"We’re extremely pleased to welcome Carmichael Partners to the Bandwidth.com team," says David Morken, Chief Executive Officer of Bandwidth.com. "Carmichael is an ideal investment partner for us due to its industry expertise and its ability to help us capitalise on future growth and strategic opportunities. This investment is great news for small and medium businesses and leading Voice 2.0 application providers who trust us to innovate for them."

This funding news punctuates a series of recent major achievements for Bandwidth.com. The company acquired dash Carrier Services in February and announced a landmark commercial deal with the Verizon wireline companies in January. Bandwidth.com completed a record-setting 2010, as it added thousands of new customers and became the sixth largest provider of phone number based services in the United States. In total, Bandwidth.com revenues will exceed $100 million in 2011.

The company also recently launched its Phonebooth Mobile offering and rolled out the all-new Broadband.com site. Broadband.com features an industry first online interactive national broadband map that provides previously unavailable marketplace information. Broadband.com goes beyond conventional broadband coverage mapping to provide businesses and consumers alike with critical user metrics, such as real-world download and upload speeds, penetration of broadband services in the user’s local market, and real-time pricing. Broadband.com sets the bar as a one-stop resource for informed broadband planning and purchasing.

"We are excited to partner with Bandwidth.com as the company continues to build upon its extraordinary record of innovation and rapid growth in the communications space," noted Carmichael co-founder and prior FCC Chairman Kevin Martin. Fellow co-founder Brian Bailey adds: "We believe this investment will enable the company to expand its service offerings and capitalize on numerous business opportunities with both existing and new customers."

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